The incredible £25billion plan for new capital city thrown into chaos
The country's ambitious plans to build a new capital city have been thrown into turmoil by the unexpected resignations.
Plans to build a new capital city in Indonesia have been thrown into chaos after the unexpected resignation of two top officials.
Indonesia is building a new capital city known as Nusantara in the jungles of East Kalimantan on Borneo – an island shared with Malaysia.
The ambitious project is expected to cost around £25billion and be completed by 2045.
Some 6,000 government workers are supposed to move there in time for the next president's inauguration in October.
However, there are fears the project could be in jeopardy after the head and deputy head of the body overseeing the construction resigned.
The government moved swiftly to try and allay fears that the project was in danger of collapsing, by appointing the public works and housing minister and the deputy agrarian minister in their place.
Indonesia’s President Joko Widodo took to his Instagram channel to try and assure the public that the development would proceed at pace.
He wrote: “The development of new capital will be continued in line with the shared vision that has been established."
Analysts, though, say the resignations will likely cause investors to question whether the project can be completed.
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Arya Fernandes, an analyst at Indonesia’s Centre for Strategic and International Studies, told CNN: “These resignations will make people question the project.
“The question is how to convince investors that there is no problem.”
One of the major sticking points has been the status of landownership at the new capital site.
The government has promised a swift resolution to the problem in an attempt to reassure investors.
The decision to move the capital has been prompted by fears that Jakarta, home to ten million people, is sinking fast due to rising sea levels.
Excessive groundwater withdrawals have contributed to subsidence rates of up to six inches a year, and 40 percent of the city is now below sea level.
Environmental experts warn that a third of Jakarta could be submerged by 2050 if subsidence continues at the current rate.
